Engine No. 1 wants Exxon to make different capital decisions

Image: Exxon Mobil Corporation

Engine No. 1 LLC, the activist shareholder that won three seats on the Exxon Mobil Corporation board earlier this year, hopes the oil giant will change its business model, said CEO Jennifer Grancio. 

“What our hope is that Exxon is looking at not just the next year or two, but how they’re changing the footprint of how they make money, how they’re successful in years five, 10 and 15,” Grancio said during a Bloomberg Television interview at the Milken Institute Global Conference in California on Wednesday. “We hope to see some different capital-allocation decisions.”

Engine No. 1 still holds Exxon shares, Grancio said. The three directors elected to the board are independent and do not act on orders from Engine No 1.

“The change at Exxon is going to take time,” Grancio said. “The first piece of this is getting the right capability into the boardroom.”

© 2021 Bloomberg L.P.

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